@FinanceYF5: Many well-known VCs started with small funds of less than $10 million, filling the early financing gaps that larger institutions overlook. According to Dan Gray's data: For a $10 million fund, administrative and compliance costs in the UK are about $1.4 million, while in the US it's only $450,000. 2024 median fund size: US $20 million, ...
Summary
This article discusses the phenomenon of well-known VCs starting with micro funds, comparing the administrative and compliance cost differences between the UK and the US for $10 million funds, and points out that high fixed costs make it harder for small funds to survive.
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Many renowned VCs start with small funds of less than $10 million, filling the early-stage funding gap that larger institutions often overlook.
Data from Dan Gray: For a $10 million fund, administrative and compliance costs in the UK are about $1.4 million, while in the US they are only $450,000.
Median fund size in 2024: $20 million in the US, $88 million in the UK. High fixed costs make it harder for small funds to survive. https://t.co/geFSuGY6ut
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